Home equity loans are perfect for homeowners looking to tap into large amounts of capital for home renovations, debt consolidation, and more! But will you qualify for a home equity loan if you have bad credit?
In short, you definitely can!
Home equity loans emphasize the amount of equity that you have been able to build up in your property, and thanks to home equity lenders, such as our team at Leap Financial, they make accessing this capital as simple and easy as can be, unlike traditional banking institutions.
The Different Types Of Lenders
It’s important to note that not all lenders are the same. While private home equity lenders can help you attain the home equity loans you deserve with unbeatable rates (even with bad credit), this is not always the case with traditional banks who typically have stricter approval requirements such as:
- A strong debt-to-income ratio that is no higher than 35%
- Ability to prove stable employment
- You have at least 15% equity in your home
- Strong history of timely debt repayments
- Minimum credit score of 620
For many Canadians, these requirements are not always the easiest things to attain, especially for those with poor credit. Are you beginning to see why so many homeowners turn to home equity lenders for financial guidance and assistance?
The Advantages Of Home Equity Loans
An Easy Approval Process
Home equity loans are secured debts, meaning they’re secured by reliable investments (your property). This typically allows lenders to be much more flexible and significantly increase the likelihood of you getting approved, especially when compared to applying for an unsecured loan at a traditional banking institution, with bad credit.
You Qualify For Larger Loans!
Because of the ever increasing valuations of property on the housing market, the home equity of your house allows you to qualify for more. Home equity loans allow homeowners to receive loans of amounts up to 80% of their property’s value!*
Cater To Your Financial Needs
Home equity loans allow you to spend the money you receive in however way you see fit. Unlike traditional banks, the conditions of a home equity loan from a private lender are not bound to any specific spending terms or purposes. This allows homeowners to use their loans for a variety of endeavours including:
- Debt consolidation
- Personal education
- Home renovations
- Business financing
- Acquiring other properties
How To Get Approved For A Home Equity Loan With Poor Credit
Now that you know you can receive a home equity loan, even with poor credit, you’re ready to get approved! At Leap Financial, our team of experienced specialists work to provide homeowners with the best lending solutions for each and every unique financial situation.